Taxes on imported luxury and non essential goods in Pakistan have reached as high as 60 percent of the product value, significantly increasing costs for consumers, reported Business Recorder.
Officials from the Federal Board of Revenue said these goods face multiple taxes at the import stage, including 25 percent sales tax, customs duties, regulatory duties ranging from 5 to 55 percent, withholding tax of up to 5 percent, and additional customs duty between 2 to 7 percent.
The higher taxation applies to a wide range of products, including dairy items, processed food, beverages, cosmetics, electronics, home appliances, and other non essential goods.
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Under the current regime, the combined impact of these duties pushes total taxation to between 50 to 60 percent, while taxes on imported luxury vehicles exceed 300 percent, according to officials.
Data shows that sales tax collection on imports rose to Rs. 2,281.9 billion in fiscal year 2024 to 2025, up from Rs. 1,863.9 billion in the previous year, reflecting a 22.4 percent increase.
Retailers estimate that imported goods could become over 20 percent more expensive, while locally produced items may see price increases of around 10 percent.